For a number of years, the expectation in the commercial property market was that all privately rented commercial buildings would need to achieve an EPC B by 2030. It was an ambitious target and one that caused plenty of discussion across landlords, occupiers and consultants.
This week, the Government announced a change in direction.
Under the revised proposal, privately rented non-domestic buildings over 1,000m² in England and Wales will be required to meet an EPC B standard from 2031, where it is cost effective. Buildings below 1,000m² will continue to be subject to the current minimum standard of EPC E. The previously proposed EPC C milestone for 2027 will also not be taken forward.
The change follows extensive consultation with industry, investors and other stakeholders. The Government acknowledged that applying an EPC B target across the entire commercial building stock by 2030 was not practical and has instead opted for a more targeted approach focused on larger buildings.
So, what does this mean in practice?
For owners of larger commercial properties, not a huge amount changes. The direction of travel remains the same: buildings will need to become more energy efficient, and landlords should still be thinking about their EPC ratings, future retrofit works and how to improve building performance over time.
For smaller properties, there is more breathing room. The current EPC E standard remains in place and there is no immediate requirement to move beyond this. That said, energy efficiency is increasingly influencing tenant expectations, operating costs and asset values, so understanding how your building performs is still worthwhile.
Our view is that while the timeline may have changed, the long-term ambition has not. Buildings that are more efficient are cheaper to run, often more comfortable to occupy and are generally better placed for whatever regulations come next.
The commercial property market may now have different starting lines, but it still feels like everyone is heading in the same direction.
Link to full statement: https://questions-statements.parliament.uk/written-statements/detail/2026-06-18/hcws126
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